31st Aug 2010 07:00
UTV Media plc
Interim Report
For the 6 months ended 30 June 2010
Financial highlights on continuing operations
* Group revenue up by 9% to £59.2m (2009: £54.4m)
* Group operating profit including associates, up by 9% to £12.2m (2009: £
11.2m) * Pre-tax profits up by 17% to £9.4m (2009: £8.0m) * £18.4m reduction in net debt over 12 months to £77.3m (2009: £95.7m) * Net finance costs down 10% to £2.7m (2009: £3.0m) * Diluted adjusted earnings per share up by 16% to 7.36p (2009: 6.32p) * Proposed interim dividend of 1.00p (2009: Nil)
Operational highlights and prospects
* Continuing strong audience delivery across both Radio and Television
* GB Radio and Television revenue, strengthened by the World Cup, experienced
strong growth in the first six months * The decline in Irish Radio revenue has been arrested, with growth of 3% anticipated in the third quarter
* Radio GB benefited from the inclusion of Sport magazine, which was acquired
in May 2009, and complements the strong sports-led offering to advertisers
* Advertising revenue in talkSPORT in the second half of the year is expected
to benefit from the two significant rights packages obtained for the
Premier League
* Greater operational flexibility has been facilitated by the renegotiation
of key banking covenants at better than market interest rates
John McCann, Group Chief Executive, UTV Media plc, said:
"The first six months of 2010 saw a better trading performance due to the improving economic environment and the stimulus of the World Cup and this improvement in trading appears to be continuing in the third quarter."
For further information contact:
Maitland +44 (0) 20 7379 5151Anthony SilvermanRowan BrownUTV Media plc
John McCann Group Chief Executive +44 (0) 28 9026 2202
Norman McKeown Group Finance Director +44 (0) 28 9026 2098
Orla McKibbin Head of Communications +44 (0) 28 9026 2188
Chairman's Statement
Introduction
The improving economic environment and the stimulus of the World Cupunderpinned a better trading performance in the first six months. Consequently,profit before tax increased by 17% to £9.4m (2009: £8.0m) which, coupled withstrong cash management, drove net debt down to £77.3m, some £18.4m less than at30 June 2009.Results and DividendIn the first six months of 2010 group turnover from continuing operationsincreased by 9% to £59.2m (2009: £54.4m). Group operating profit, includingassociates, was up by 9% to £12.2m (2009: £11.2m), driven primarily by a strongperformance in our radio divisions, where operating profit improved by 17% to £9.8m (2009: £8.4m). Television operating profit was lower at £1.4m (2009: £1.8m) while new media maintained its operating profit at £1.0m (2009: £1.0m).Lower net interest costs of £2.7m (2009: £3.0m) helped lift pre-tax profits to£9.4m (2009: £8.0 m). Post tax profits on continuing operations of £7.2m (2009:£6.2m) delivered a 16% improvement in diluted adjusted earnings per share of7.36p (2009: 6.32p).
Against the background of an improved trading performance, your Board has re-instated an interim dividend, declared at 1.00p (2009: Nil) which will be paid on 15 October 2010 to all shareholders on the Register at the close of business on 17 September 2010.
Radio
Our GB radio division performed strongly in the first half with turnover up by22% to £25.1m (2009: £20.6m). Within this, the World Cup helped to lift revenueat talkSPORT by 23% to £12.6m (2009: £10.2m) while local radio revenue wasunchanged at £10.3m (2009: £10.3m). Even after accounting for the significantadditional costs associated with the World Cup, talkSPORT's operating profitincreased by 48% to £3.9m (2009: £2.7m) while operating profit at our localradio stations decreased marginally to £2.2m (2009: £2.3m). The turnaround atSport Magazine, which we acquired for a nominal sum in May 2009, was creditablewith the previously loss-making magazine recording an operating profit of £0.5mon revenue of £2.2m. Overall, our GB radio division recorded a 38% increase inoperating profit to £6.6m (2009: £4.8m).The performance of our Irish radio division continued to be impacted by thedifficult economic environment but the significant decline in advertisingrevenue experienced in 2009 moderated in the first six months of 2010. On alike for like basis, revenue in the first half of this year was down by 4%,with the month of June recording an increase of 6%. Movement in foreignexchange brought a further 3% reduction resulting in revenue being down at £11.5m (2009: £12.3m) for the first half. This reduction was mitigated byadditional cost savings of £0.4m resulting in an operating profit of £3.2m(2009: £3.6m) for Irish radio.
Television
A welcome improvement in the UK airtime market in the first quarter of 2010 wasnot matched in the Irish marketplace but the second quarter brought growth inboth the UK and Ireland. With the additional stimulus of the World Cup,television advertising revenue was up by 7% to £15.0m (2009: £14.0m) in the sixmonths to 30 June 2010. In this period, total television revenue was £17.0m(2009: £15.5m). Additional network programme costs, primarily in respect of theWorld Cup, and higher commission and bonus payments more than offset theimprovement in revenue, resulting in a lower television operating profit of
£1.4m (2009: £1.8m).New Media
Revenue in our new media division reduced slightly to £5.6m (2009: £5.9m) but this was offset by a £0.3m reduction in costs. Consequently, new media maintained an operating profit of £1.0m for the six months to 30 June 2010.
Net Debt
Following on from a £19.1m reduction in net debt in 2009, we further reduceddebt by £11.2m in the first six months of 2010. Improved profitability and atight focus on the management of working capital provided the cash generationto help reduce net debt to £77.3m at 30 June 2010 (2009: £95.7m).In order to provide additional operational flexibility the Group accepted anoffer from its banking consortium to ease the terms of its key bankingcovenants for a margin increase. The new covenants are effective from 1 April2010 until the facilities expire in June 2013.
Prospects
The fragility of economic recovery warrants caution in any forward looking statements. Nevertheless, the improvement in trading this year is evident and this is continuing into the third quarter of 2010.
Total revenue in our GB radio division is expected to be up by 10% in the thirdquarter. Within this our national radio station, talkSPORT, is expected toincrease its revenue by 15% in the three months to 30 September and theacquisition of two significant rights packages for Premier League coverage,while adding to costs, should drive both audience and revenue growth. Recoveryat our local radio operations is lagging this and in the third quarter, revenueis expected to be down by 5%. The transformation of Sport magazine's fortuneshas continued into the third quarter, raising expectations that its success inthe first half of the year can be replicated in the second half, even in theabsence of World Cup activity.
After a very difficult period, our Irish radio stations are experiencing an improving trend. Strong audience delivery is driving the success of our unique Urban Access offering to advertisers, even in a weak market, and we would expect our Irish radio advertising revenue to show a 3% improvement in the three months to 30 September 2010.
Recovery in our Irish television advertising revenue had also lagged the UK market but again, the improving trend has gradually brought this part of our revenue back into positive territory. We forecast that our total television advertising revenue will be up by 15% in the third quarter of this year.
Our new media division operates in a highly competitive consumer marketplace.Nevertheless, while pricing pressures may hamper revenue growth, our continuedfocus on cost control should enhance margins and maintain operating profit inthe three months to 30 September 2010.In last year's Interim Results I wrote that the UTV group was "well positionedfor the upturn when this current unpredictable period comes to an end". Whileit could not yet be said that the unpredictable period is at an end, it is fairto say that much of the difficult work to prepare the group for the recessionis bearing fruit. As ever, a sustained recovery in the wider economy is thepre-requisite to ensuring that the group can take full advantage of its strongposition in the markets in which it operates.John B McGuckianChairman31 August 2010Group Income Statement
for the six months ended 30 June 2010
Results Results before before Exceptional Exceptional Exceptional Exceptional Items Items Total Items Items Total 30 30 30 30 30 30 June June June June June June Notes 2010 2010 2010 2009 2009 2009 £000 £000 £000 £000 £000 £000 Continuing operations Revenue 3 59,169 - 59,169 54,365 - 54,365 Operating costs (47,107) - (47,107) (43,302) - (43,302) ---------- ---------- ---------- ---------- ---------- ---------- Operating profit 3 12,062 - 12,062 11,063 - 11,063 from continuing operations before tax and finance costs Share of results 151 - 151 143 - 143 of associates accounted for using the equity method ---------- ---------- ---------- ----------
---------- ----------
Profit from 12,213 - 12,213 11,206 - 11,206 continuing operations before tax and finance costs Finance revenue 36 - 36 104 - 104 Finance costs (2,708) - (2,708) (3,071) - (3,071) Foreign exchange (153) - (153) (244) - (244) loss ---------- ---------- ---------- ----------
---------- ----------
Profit from 9,388 - 9,388 7,995 - 7,995 continuing operations before tax Taxation (2,159) - (2,159) (1,821) (1,500) (3,321) ---------- ---------- ---------- ----------
---------- ----------
Profit from 7,229 - 7,229 6,174 (1,500) 4,674 continuing operations after tax Discontinued operations Loss from 6 - - - (360) - (360) discontinued operations ---------- ---------- ---------- ----------
---------- ----------
7,229 - 7,229 5,814 (1,500) 4,314 ----------- ----------- ----------- ----------- ----------- ----------- Attributable to: Equity holders of 7,070 - 7,070 5,667 (1,500) 4,167 the parent Minority interests 159 - 159 147 - 147 ---------- ---------- ---------- ----------
---------- ----------
7,229 - 7,229 5,814 (1,500) 4,314 ----------- ----------- ----------- -----------
----------- ----------- Note 2010 2009 Earnings per share Continuing operations Basic 8 7.41p 4.75p Diluted 8 7.36p 4.75p Adjusted 8 7.41p 6.32p Diluted adjusted 8 7.36p 6.32p ------- ------- Continuing and discontinued operations Basic 8 7.41p 4.37p Diluted 8 7.36p 4.37p Adjusted 8 7.41p 5.94p Diluted adjusted 8 7.36p 5.94p ------- -------
Group Statement of Comprehensive Income
for the six months ended 30 June 2010
30 30 June June 2010 2009 £000 £000 Profit for the period 7,229 4,314 ---------- ----------- Other comprehensive (expense)/income
Exchange difference on translation of (6,435) (8,850) foreign operations
Actuarial loss on defined benefit (3,668) (5,960) pension schemes
Cash flow hedges: - Loss arising during the year (996) (639) - Less transfers to the income 1,116 728 statement
Tax relating to other comprehensive 1,007 1,646 income
---------- -----------
Other comprehensive expense for the (8,976) (13,075) period, net of tax
---------- ----------- Total comprehensive expense for the (1,747) (8,761) period, net of tax ---------- ----------- Attributable to: Equity holders of the parent (1,906) (8,908) Minority interests 159 147 ---------- ----------- (1,747) (8,761) ---------- ----------- Group Balance Sheet
for the six months ended 30 June 2010
Restated 30 30 31 June June December Notes 2010 2009 2009 £000 £000 £000 ASSETS Non-current assets Property, plant and equipment 5 10,574 11,468 11,440 Intangible assets 251,634 256,491 261,030
Investments accounted for using the 246 258 137
equity method Deferred tax asset 13,094 16,758 14,255 ----------- ----------- ----------- 275,548 284,975 286,862 ----------- ----------- ----------- Current assets Inventories 617 522 332 Trade and other receivables 32,103 28,146
32,915
Cash and short term deposits 10,434 9,864 8,434
----------- ----------- ----------- 43,154 38,532 41,681 ----------- ----------- ----------- TOTAL ASSETS 318,702 323,507 328,543 ----------- ----------- ----------- EQUITY AND LIABILITIES
Equity attributable to equity holders of the
parent Equity share capital 55,557 55,557 55,557 Capital redemption reserve 50 50 50 Treasury Shares (1,258) (1,258) (1,258) Foreign currency reserve 5,997 9,796 12,432 Cash flow hedge reserve (716) (1,393) (821) Retained earnings 66,156 54,447 63,409 ----------- ----------- ----------- 125,786 117,199 129,369 Minority interest 656 740 747 ----------- ----------- ----------- TOTAL EQUITY 126,442 117,939 130,116 ----------- ----------- ----------- Non-current liabilities Interest bearing loans and borrowings 9 79,592 97,298 88,532 Pension liability 10 13,505 13,718 10,999 Provisions 992 1,623 1,060 Deferred tax liabilities 48,597 49,244 49,580 ----------- ----------- ----------- 142,686 161,883 150,171 ----------- ----------- ----------- Current liabilities Trade and other payables 38,653 31,871 36,793
Current portion of interest bearing 9 8,109 8,255 8,374
loans and borrowings Financial liabilities 969 1,869 1,100 Tax payable 1,425 1,348 1,540 Provisions 418 342 449 ----------- ----------- ----------- 49,574 43,685 48,256 ----------- ----------- ----------- TOTAL LIABILITIES 192,260 205,568 198,427 ----------- ----------- ----------- TOTAL EQUITY AND LIABILITIES 318,702 323,507 328,543 ----------- ----------- -----------Group Cash Flow
for the six months ended 30 June 2010
30 30 June June 2010 2009 £000 £000 Operating activities Profit before tax 9,388 7,551
Adjustments to reconcile profit before tax to net cash flows from operating activities
Foreign exchange loss 153 244 Net finance costs 2,672 2,967 Share of results of associates (151)
(143)
Depreciation of property, plant and equipment 832 887
Difference between pension contributions paid and amounts (1,164) (811) recognised in the income statement
Increase in inventories (285) (31)
(Increase)/decrease in trade and other receivables (343) 1,610
Increase in trade and other payables 1,448 719 (Decrease)/increase in provisions (49) 642 Profit from sale of property, plant and equipment (14) (12)
Share based payments 231 - -------- --------- Cash generated from operations before exceptional costs 12,718 13,623 Exceptional costs (397) (1,340) Tax received 18 120 ---------- ---------- Net cash inflow from operating activities 12,339 12,403 ---------- ---------- Investing activities Interest received 30 105
Proceeds on disposal of property, plant and equipment 25 65 Purchase of property, plant and equipment (359)
(1,758)
Payment to acquire investments (203) (236) ---------- ---------- Net cash flows from investing activities (507) (1,824) ---------- ---------- Financing activities Borrowing costs (2,348) (2,905)
Dividends paid to equity holders of the parent (3) (9) Dividends paid to minority shareholders of subsidiaries (250) -
Repayment of borrowings (7,022) (6,778) Rights issue costs (2) (23) ---------- ---------- Net cash flows used in financing activities (9,625) (9,715) ---------- ----------
Net increase in cash and cash equivalents 2,207 864 Net foreign exchange differences (207)
(280)
Cash and cash equivalents at 1 January 8,434 9,280 ---------- ---------- Cash and cash equivalents at 30 June 10,434 9,864 ---------- ----------
Group Statement of Changes in Equity
for the six months ended 30 June 2010
Restated Equity Capital Foreign Cashflow Restated Share share redemption Treasury currency hedge Retained holder Minority Restated capital reserve shares reserve reserve earnings equity interest Total £000 £000 £000 £000 £000 £000 £000 £000 £000 At 1 January 55,557 50 (1,258) 18,646 (1,455) 56,475 128,015 593 128,608 2009 Total net - - - (8,850) 62 (120) (8,908) 147 (8,761) comprehensive income/ (expense) in the period Dividends - - - - - (1,908) (1,908) - (1,908) payable to equity shareholders --------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
At 30 June 2009 55,557 50 (1,258) 9,796 (1,393) 54,447 117,199 740 117,939 Total net - - - 2,636 572 8,880 12,088 317 12,405 comprehensive income/ (expense) in the period Dividends paid - - - - - - - (310) (310) to minority shareholders Share based - - - - - 82 82 - 82 payment --------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
At 31 December 55,557 50 (1,258) 12,432 (821) 63,409 129,369 747 130,116 2009 Total net - - - (6,435) 105 4,424 (1,906) 159 (1,747) comprehensive income/ (expense) in the period Dividends paid - - - - - - - (250) (250) to minority shareholders Share based - - - - - 231 231 - 231 payment Dividends - - - - - (1,908) (1,908) - (1,908) payable to equity shareholders --------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
At 30 June 2010 55,557 50 (1,258) 5,997 (716) 66,156 125,786 656 126,442 ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Notes to the accounts
1. Basis of preparation
The interim financial statements have been prepared in accordance with IAS34"Interim Financial Reporting" and the Disclosure and Transparency Rules of theFinance Services Authority.
In addition the interim financial statements have been prepared on a basis consistent with the accounting policies set out in the Group's Annual Report and Accounts for the year ended 31 December 2009.
Retained earnings together with trade and other payables in the comparativeBalance Sheet at 30 June 2009, and consequently the Statement of Changes inEquity for the six month period then ended, have been restated to recognise thefinal 2008 dividend paid in July 2009 of £1,908,000, but which was approved atthe Company's annual general meeting in May 2009. The Statements ofComprehensive Income, the Cash Flow Statement and the financial position as at1 January 2009 are unaffected.These interim financial statements have been prepared on the going concernbasis as the directors, having considered available relevant information, havea reasonable expectation that the Group has adequate resources to continue inoperational existence for the foreseeable future.The interim results are unaudited but have been formally reviewed by theauditors and their report to the Company is set out at the end of this InterimReport. The information shown for the year ended 31 December 2009 does notconstitute statutory accounts within the meaning of Section 434 of theCompanies Act 2006 and has been extracted from the Group's 2009 Annual Report,which has been filed with the Registrar of Companies. The report of theauditors on the accounts contained within the Group's 2009 Annual Report wasunqualified and did not contain a statement under either Section 498(2) orSection 498(3) of the Companies Act 2006 regarding inadequate accountingrecords or a failure to obtain necessary information and explanations.
2. Seasonality and cyclicality
There is no significant seasonality or cyclicality affecting the interim results of the operations.
3. Segmental information
The Group operates in four principal areas of activity - radio in GB, radio inIreland, commercial television and new media. These four principal areas ofactivity also form the basis on which the Group is managed and reports areprovided to the Chief Executive and the Board. The following is an analysis ofthe revenue and results for the period, analysed by reportable segment.RevenueSix months ended 30 June 2010 Radio GB Radio Television New Media Total Ireland £000 £000 £000 £000 £000 Sales to third parties 25,114 11,466 16,977 5,612 59,169 Intersegmental sales 378 663 1,089 - 2,130 ---------- ----------- ----------- ----------- ----------- Total segment revenue 25,492 12,129 18,066 5,612 61,299 ---------- ----------- ----------- ----------- ----------- Six months ended 30 June 2009 Radio GB Radio Television New Media Total Ireland £000 £000 £000 £000 £000 Sales to third parties 20,643 12,324 15,534 5,864 54,365 Intersegmental sales 464 667 806 - 1,937 ---------- ----------- ----------- ----------- ----------- Total segment revenue 21,107 12,991 16,340 5,864 56,302 ---------- ----------- ----------- ----------- -----------ResultsSix months ended 30 June 2010 Radio GB Radio Television New Total Ireland Media £000 £000 £000 £000 £000 Segment operating profit 6,493 3,190 1,350 1,029 12,062 before exceptional costs Share of results of 151 associates Net finance costs (2,672) Foreign exchange loss (153) ---------- Profit before tax 9,388 ---------- Six months ended 30 June 2009 Radio GB Radio Television New Total Ireland Media £000 £000 £000 £000 £000 Segment operating profit 4,660 3,580 1,815 1,008 11,063 before exceptional costs Share of results of 143 associates Net finance costs (2,967) Foreign exchange loss (244) ---------- Profit before tax 7,995 ----------4. Discontinued operations
Discontinued operations in 2009 relate to Central FM which was sold on 8 January 2010 for a nominal sum and Valleys Radio which was closed on 30 April 2009.
5. Property, plant and equipment
During the period the Group spent £337,000 on capital additions.
6. Taxation
In 2009 the capital gains tax rate in the Republic of Ireland was revised from22% to 25%. Accordingly the deferred tax liabilities in respect of radiolicences in the Republic of Ireland were restated to recognise the future gainsthereon at this rate. This resulted in a net exceptional charge of £1,500,000in the comparative period.In the emergency budget in June 2010, changes in future corporation tax ratesin the UK were proposed. As these have not yet been substantively enacted,deferred tax has been calculated at 28% within this Interim Report. If theproposed corporation tax rate changes were to be fully approved, the relevantdeferred tax assets and liabilities would be restated accordingly resulting ina net exceptional credit of approximately £4,300,000.7. Dividends 30 30 June June 2010 2009 £000 £000
Equity dividends on ordinary shares Declared and paid during the period - -
---------- ----------
Proposed and recognised as a liability at 30 June Final for 2009: 2.00p (2008: 2.00p) 1,908 1,908
---------- ----------
Proposed but not recognised as a liability at 30 June Interim for 2010: 1.00p (2009: Nil) 954 -
---------- ----------
The final dividend for 2009 was paid on 15 July 2010 (2008: 15 July 2009).
8. Earnings per share
Basic earnings per share is calculated based on the profit for the financialperiod attributable to equity holders of the parent and on the weighted averagenumber of shares in issue during the period.Adjusted earnings per share are calculated based on the profit for thefinancial period attributable to equity holders of the parent adjusted for theexceptional items. This calculation uses the weighted average number of sharesin issue during the period.Diluted earnings per share are calculated based on profit for the financialperiod attributable to equity holders of the parent. Diluted adjusted earningsper share are calculated based on profit for the financial period attributableto equity holders of the parent before exceptional items. In each case theweighted average number of shares is adjusted to reflect the dilutive potentialof the awards expected to be vested on the Long Term Incentive Schemes.
The following reflects the income and share data used in the basic, adjusted, diluted and diluted adjusted earnings per share calculations:
Net profit attributable to equity holders 2010 2009 Continuing Discontinued Total Continuing Discontinued Total Operations Operations Operations Operations £000 £000 £000 £000 £000 £000 Net profit 7,070 - 7,070 4,527 (360) 4,167 attributable to equity holders Exceptional - - - 1,500 - 1,500 items (net of tax) ------- ------- ------ ------- ------ ------ Total adjusted 7,070 - 7,070 6,027 (360) 5,667 and diluted profit attributable to equity holders ----------- ----------- --------- ----------- ----------- ----------- Weighted average number of shares
2010 2009 thousands thousands
Weighted average number of shares for basic and adjusted 95,403 95,403 earnings per share (excluding treasury shares) Dilutive potential of the Long Term Incentive Schemes 672
- ----- -----
Adjusted weighted average number of ordinary shares for 96,075
95,403 diluted earnings per share ----------- ----------- Earnings per share From continuing and discontinued operations 2010 2009 Basic 7.41p 4.37p ----------- ----------- Diluted 7.36p 4.37p ----------- ----------- Adjusted 7.41p 5.94p ----------- ----------- Diluted adjusted 7.36p 5.94p ----------- ----------- From continuing operations 2010 2009 Basic 7.41p 4.75p ----------- ----------- Diluted 7.36p 4.75p ----------- ----------- Adjusted 7.41p 6.32p ----------- ----------- Diluted adjusted 7.36p 6.32p ----------- ----------- From discontinued operations 2010 2009 Basic - (0.38)p ----------- ----------- Diluted - (0.38)p ----------- ----------- Adjusted - (0.38)p ----------- ----------- Diluted adjusted - (0.38)p ----------- ----------- 9. Financial liabilities 30 30 31 June June December 2010 2009 2009 £000 £000 £000 Current
Current instalments due on bank 8,109 8,255 8,374
loans Non-current
Non-current instalments due on 79,592 97,298 88,532
bank loans ----------- ----------- ----------- Total 87,701 105,553 96,906 ----------- ----------- -----------
The bank loans at 30 June 2010 are stated net of deferred financing costs amounting to £496,000 (30 June 2009: £671,000; 31 December 2009: £594,000).
10. Pension schemes
The IAS 19 deficit at 30 June 2010 is £13,505,000 compared with a deficit of £10,999,000 at 31 December 2009. The increase is the result of actuarial lossesboth on the assets and liabilities during the period.
The assets generated lower than expected return during the period resulting in an actuarial loss of £2,658,000.
The liabilities reflect a further increase in life expectancy for theparticipating members by the inclusion of an allowance for future long termimprovements on mortality rates. The effect of this was partly offset by priceinflation falling by more than the discount rate during the period resulting inan overall actuarial loss on the liabilities of £1,021,000.
These actuarial losses were partially offset by a payment £1,181,000 to the UTV Scheme over and above normal funding during the period.
11. Related party transactions
The nature of related parties disclosed in the consolidated financialstatements for the Group as at and for the year ended 31 December 2009 has notchanged. There have been no significant related party transactions in the sixmonth period ended 30 June 2010.
Risks and uncertainties
The 2009 Annual Report sets out the most significant risk factors relating to UTV Media plc's operations in the Company's judgement at the time of that report. The Company does not consider that these principal risks and uncertainties have changed. However additional risks and uncertainties not currently known to the Company, or that the Company does not currently deem material may also have an adverse effect on its business.
With respect to the risks and uncertainties identified within the Annual Report, the Chairman's statement highlights those risks and uncertainties that will have significant impact throughout 2010.
Statement of directors' responsibilities
The interim report is the responsibility of, and has been approved by, the directors of UTV Media plc. Accordingly, the directors confirm that to the best of their knowledge:
* the condensed set of financial statements has been prepared in accordance
with IAS 34 "Interim Financial Reporting" as adopted by the European Union;
* the interim report includes a fair review of the information required by
the Disclosure and Transparency Rules:
- DTR 4.2.7R, being an indication of important events that have occurred duringthe first six months of the financial year and their impact on the condensedset of financial statements, and a description of the principal risks anduncertainties for the remaining six months of the year; and
- DTR 4.2.8R, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period, and any changes in the related party transactions described in the last annual report that could do so.
By order of the Board:John McCannGroup Chief Executive31 August 2010
Independent review report to UTV Media plc
Introduction
We have been engaged by the Company to review the condensed set of financialstatements in the half-yearly financial report for the 6 months ended 30 June2010 which comprises the Group Income Statement, Group Statement ofComprehensive Income, Group Balance Sheet, Group Statement of Changes inEquity, Group Cash Flow Statement and the related notes 1 to 11. We have readthe other information contained in the half yearly financial report andconsidered whether it contains any apparent misstatements or materialinconsistencies with the information in the condensed set of financialstatements.This report is made solely to the company in accordance with guidance containedin ISRE 2410 (UK and Ireland) "Review of Interim Financial InformationPerformed by the Independent Auditor of the Entity" issued by the AuditingPractices Board. To the fullest extent permitted by law, we do not accept orassume responsibility to anyone other than the company, for our work, for thisreport, or for the conclusions we have formed.
Directors' Responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.
As disclosed in note 1, the annual financial statements of the group areprepared in accordance with IFRSs as adopted by the European Union. Thecondensed set of financial statements included in this half-yearly financialreport has been prepared in accordance with International Accounting Standard34, "Interim Financial Reporting", as adopted by the European Union.
Our Responsibility
Our responsibility is to express to the Company a conclusion on the condensedset of financial statements in the half-yearly financial report based on ourreview.Scope of Review
We conducted our review in accordance with International Standard on ReviewEngagements (UK and Ireland) 2410, "Review of Interim Financial InformationPerformed by the Independent Auditor of the Entity" issued by the AuditingPractices Board for use in the United Kingdom. A review of interim financialinformation consists of making enquiries, primarily of persons responsible forfinancial and accounting matters, and applying analytical and other reviewprocedures. A review is substantially less in scope than an audit conducted inaccordance with International Standards on Auditing (UK and Ireland) andconsequently does not enable us to obtain assurance that we would become awareof all significant matters that might be identified in an audit. Accordingly,we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us tobelieve that the condensed set of financial statements in the half-yearlyfinancial report for the 6 months ended 30 June 2010 is not prepared, in allmaterial respects, in accordance with International Accounting Standard 34 asadopted by the European Union and the Disclosure and Transparency Rules of theUnited Kingdom's Financial Services Authority.Ernst & Young LLPBelfast31 August 2010
vendorRelated Shares:
WLG.L